"General Conclusions: From Crisis to A Global Political Economy of Freedom"

In this chapter I sum up the basic problems for a new theory of 21st century financial crises in light of the Asian and other subsequent crises. My conclusion is that there are indeed deep structural causes at work in the global markets that affect the political economy of countries and regions. Methodologically, new concepts, models and theories are constructed, at ;least partially, to conduct further meaningful empirical work leading to relevant policy conclusions. This book belongs to the beginning of intellectual efforts in this direction. Political economic analyses at the country level, CGE modeling within a new theoretical framework, and neural network approach to learning in a bounded rationality framework point to a role for reforms at the state, firm and regional level. A new type of institutional analysis called the 'extended panda's thumb approach' leads to the recommendation that path dependent hybrid structures need to be constructed at the local, national, regional and global level to lead to a new global financial architecture for the prevention--- and if prevention fails--- management of financial crises.

Suzaku Observations of the North Polar Spur: Evidence for Nitrogen Enhancement

We present observations of the North Polar Spur (NPS) using the X-ray Imaging Spectrometer (XIS) aboard the Suzaku X-ray satellite. The NPS is a large region of enhanced soft X-ray and radio emission projected above the plane of the Galaxy, likely produced by a series of supernovae and stellar winds from the nearby Sco-Cen OB association. The exceptional sensitivity and spectral resolution of the XIS below 1 keV allow unprecedented probing of low-energy spectral lines, including CVI (0.37 keV) and NVII (0.50 keV), and we have detected highly-ionized nitrogen toward the NPS for the first time. For this single pointing toward the brightest 3/4 keV emission (l = 26.8 deg, b = +22.0 deg), the best-fit NPS emission model implies a hot (kT ~ 0.3 keV), collisional ionization equilibrium (CIE) plasma with depleted C, O, Ne, Mg, and Fe abundances of less than 0.5 solar, but an enhanced N abundance, with N/O = 4.0 +0.4,-0.5 times solar. The temperature and total thermal energy of the gas suggest heating by one or more supernovae, while the enhanced nitrogen abundance is best explained by enrichment from stellar material that has been processed by the CNO cycle. Due to the time required to develop AGB stars, we conclude that this N/O enhancement cannot be caused by the Sco-Cen OB association, but may result from a previous enrichment episode in the solar neighborhood.Comment: 13 pages, 10 figures, accepted for publication in PASJ (2nd Suzaku Special Issue

Promoting Learning and Industrial Upgrading in ASEAN Countries

This paper traces the effects of the "East Asian Miracle," the 1997-1998 Asian Crisis, the recovery, and the 2008-2009 global financial crisis on ASEAN countries. It also considers how ASEAN countries can sustain growth by leveraging production networks to facilitate technology transfer. To achieve this, ASEAN countries need to maintain an environment friendly to foreign investment by resisting corruption, providing consistent and coherent enforcement of laws and regulations at all governmental levels, and maintaining stable macroeconomic fundamentals. This paper then emphasizes that ASEAN countries should focus on climbing the value chain by investing in human capital. They can do this by providing children with adequate nutrition, healthcare, and primary education, providing high school students with a high quality education in science and math, and providing university students with scientific and engineering training. The educational system should also be careful to provide students with marketable skills that businesses need. Finally, the paper argues that ASEAN should promote regional financial integration to help channel savings to high-yielding investments in the region.East asian economic history; sustainable growth; global financial crisis; ASEAN; technology transfer

Debt Composition and Balance Sheet Effect of Currency Crisis in Indonesia

The fashionable analysis of financial crisis accentuates on the role of corporate debt composition bearingthe maturity and currency mismatch. Using 226 listed companies in Jakarta Stock Exchange, this paperinvestigates the role of currency and maturity mismatches in propagating the negative effects of currency depreciation. By nature, depreciation could enhance export performance by its “competitiveness effect”, since price of goods should be cheaper. Nevertheless, due to the effects of maturity and currency mismatch, depreciation decreases net worth of the firms through “balance sheet effect”. This paperfocuses on the impact of currency depreciation on firm-level investment. By panel data analysis, we findthat firms with more dollar debt invest less in both long and short-term investment. Unfortunately, thispaper fails to provide empirical evidence on the impact of currency depreciation on firm-level investmentand other firm performance. However, it seems that the extreme currency depreciation followed by financial and economic crisis destroys structurally investment condition in Indonesia. Therefore, even though currency depreciation is not related significantly to firm-level investment, it is likely not true that the depreciation does not matter on firm as well as economic performance.maturity mismatch ; firm investment ; balance sheet effect ; financial crisis

White dwarf masses in intermediate polars observed with the Suzaku satellite

Context. White dwarfs (WDs) in cataclysmic variables (CVs) are important experimental laboratories where the electron degeneracy is taking place on a macroscopic scale. Magnetic CVs increase in number especially in the hard X-ray band (>10 keV) thanks to sensitive hard X-ray missions. Aims. From X-ray spectroscopy, we estimate the masses of nearby WDs in moderately-magnetized CVs, or Intermediate Polars (IPs). Methods. Using the Suzaku satellite, we aquired wide-band spectra of 17 IPs, covering 3-50 keV. An accretion column model of Suleimanov et al. (2005) and an optically-thin thermal emission code were used to construct a spectral emission model of IPs with resolved Fe emission lines. By simultaneously fitting the Fe line complex and the hard X-ray continuum of individual spectra, the shock temperature and the WD mass were determined with a better accuracy than in previous studies. Results. We determined the WD masses of the 17 IPs with statistical fitting errors of ~0.1-0.2 Msun in many cases. The WD mass of a recently-found IP, IGR J17195-4100, was also estimated for the first time (1.03+0.24-0.22 Msun). The average WD mass of the sample is 0.88 \pm 0.25 Msun. When our results were compared with previous X-ray mass determinations, we found significant deviation in a few systems although the reason of this is unclear. The iron abundance of the accreting gas was also estimated, and confirmed the previously reported sub-solar tendency in all sources with better accuracy.Comment: 17 pages, 12 figures, accepted for publication in A&A (publication information added in version 2

CHINA AND EAST ASIAN ECONOMIC INTEGRATION AND COOPERATION

China¡¯s role in the East Asian economic development has grown increasingly important since China becomes a rapidly growing market for other regional economies. China¡¯s participation is essential to the progress of the East Asian economic integration. Due to its great diversity, East Asian trade and investment arrangements have to be gradual and flexible. The foundation of East Asian FTA have been gradually built up beyond ¡°functional integration¡± as observed in intra-regional FDI flow, a new regional network of production and services. A pragmatic approach is to negotiate East Asian FTA on the bases of three FTAs of China-ASEAN, Japan-ASEAN, and Korea-ASEAN, the combination of which are likely to serve the modality of the future East Asian FTA. The three separate agreements need to be integrated into one by harmonizing various degrees of liberalization of agricultural sector, labor mobility, rule of origin and other factors.Economic Integration, China, ASEAN, FTA

"Managing Global Risks and Creating Prosperity: the Role of the IMF and Regional Financial Architectures"

In this paper,following an evolutionary theory of international financial institutions-- called "the extended panda's thumb" approach-- the role of IMF under the present globalization moves is analyzed. It is shown that IMF must change in a direction which allows for greater national policy autonomy. It is also shown that the IMF needs complementary regional institutions of cooperation in order to create a stabilizing financial architecture. Thus regional financial architectures will need to be integral parts of any new global financial architecture(GFA).The tentative steps taken towards regional cooperation in Asia after the financial crisis are discussed to illustrate the opportunities and challenges posed by the need to evolve towards a hybrid GFA.